For tenants in rent-stabilized apartments in New York City, the Rent Guidelines Board sets annual limits on rent increases for lease renewals. For leases beginning between October 1, 2024, and September 30, 2025, the maximum allowable increases are:
- 2.75% for a one-year lease renewal
- 5.25% for a two-year lease renewal
These caps apply to most rent-stabilized apartments and lofts, ensuring predictable and moderate increases for tenants.
Market-Rate (Unregulated) Apartments
For apartments that are not rent-stabilized or rent-controlled (often called “free market” or “unregulated” units), there is no fixed cap on rent increases. However, under the new “Good Cause Eviction Law,” a rent increase is presumed unreasonable—and may be challenged—if it exceeds 5% plus the local rate of inflation (CPI), up to a maximum of 10%. Landlords seeking increases above this threshold must justify them, and tenants may contest such hikes in court.
Rent-Controlled Apartments
Rent-controlled units, which are increasingly rare, have their own rules. Increases are determined by the Maximum Base Rent system, typically adjusted every two years. The allowed increase is usually the lower of the average of the five most recent Rent Guidelines Board annual increases or 7.5%.
Notice Requirements for Rent Increases
Regardless of apartment type, New York law requires landlords to provide written notice before increasing rent by 5% or more, or before choosing not to renew a lease. The required notice period depends on how long the tenant has lived in the apartment:
- 90 days’ notice if the tenant has lived there for two years or more, or has a two-year lease
- 60 days’ notice if the tenant has lived there for more than one year but less than two years
- 30 days’ notice if the tenant has lived there for less than one year or has a lease for less than one year
Individual Apartment Improvements (IAI)
Landlords may increase rent for rent-regulated apartments if they make qualifying improvements to individual units. However, these increases are strictly limited:
- For buildings with 35 or fewer apartments, the maximum monthly rent increase due to IAI is $89.29; for larger buildings, it is $83.33.
- Only up to three IAIs are allowed in a 15-year period, and any IAI increase is removed from the rent after 30 years.
- Recent law changes also cap the total cost of improvements that can be passed on to tenants and require landlords to fix hazardous violations and use licensed contractors.
Key Takeaways for 2025
- Rent-stabilized tenants:Â 2.75% (one-year lease) or 5.25% (two-year lease) maximum increase.
- Market-rate tenants:Â No cap, but increases above 5% plus inflation (up to 10%) can be challenged.
- All tenants: Written notice required for increases of 5% or more—30, 60, or 90 days depending on tenancy length.
- Rent-controlled tenants:Â Increases set by state formula, usually lower than market rates.
- IAI rent increases:Â Strictly limited and regulated.
Tenants should review their lease, know their apartment’s regulatory status, and be aware of their rights regarding notice and allowable increases. If you receive a rent increase notice, ensure it complies with these requirements and seek assistance if you believe your rights are being violated.
Sources
- https://portal.311.nyc.gov/article/?kanumber=KA-03296
- https://rentguidelinesboard.cityofnewyork.us/2024-25-apartment-loft-order-56/
- https://www.nytimes.com/2025/04/12/realestate/nyc-good-cause-eviction-law.html
- https://ag.ny.gov/sites/default/files/changes-in-nys-rent-law.pdf
- https://rentpost.com/resources/article/raise-rent-laws-in-nyc/